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CalPERS explains pension payments, tax forms and how COLA timing works for retirees
Summary
CalPERS staff told retirees how monthly payments are processed, how to update direct deposit and tax withholding, when to expect 1099‑R forms, and when cost‑of‑living adjustments (COLAs) take effect. The presentation stressed using myCalPERS and following processing timelines to avoid payment delays.
Courtney Klausner, a presenter from the CalPERS Sacramento Regional Office, told attendees that CalPERS retirement payments are issued monthly at the beginning of each month and are processed by the State Controller’s Office. "Your retirement payment is issued monthly at the beginning of each month and reflects the benefits you earned for the previous month," Klausner said.
Klausner urged retirees to use their myCalPERS account to manage direct deposit, tax withholding and view retirement benefit statements. She said members who switch to direct deposit should submit updates online by the 15th of the month to help ensure the change takes effect on the next payday; paper-form updates may take up to 50 calendar days to process. If a retiree closes a bank account before confirming a direct-deposit update, CalPERS may need to issue a replacement check after funds are returned by the financial institution, which can delay payment.
On taxes, Klausner explained that federal and California state withholding can be updated through myCalPERS or by submitting a tax-withholding election form; online changes take effect for the next payment, and paper changes can take up to 50 days. She noted that 1099‑R forms reporting retirement income are mailed in January each year and will be available to view in myCalPERS (the presentation cited January 2026 availability for 2025 forms).
Klausner also summarized why retirement benefits might be adjusted after the initial calculation — common reasons include employer payroll corrections, service‑credit purchases finalized after retirement, and sick‑leave conversions reported later — and said CalPERS will mail notifications explaining any changes.
On cost‑of‑living adjustments, Klausner warned that COLAs are not guaranteed and depend on inflation. "If you're eligible, you receive information about your COLA in April, roughly one month before it is applied to your retirement check," she said. She gave the schedule rule: the first COLA appears on the May retirement check in the second calendar year after retirement (for example, a retirement on Dec. 31, 2025 would see the first COLA on the May 1, 2027 check; a retirement on Jan. 1, 2026 would see the first COLA on May 1, 2028).
Klausner closed by directing retirees to the CalPERS public website and myCalPERS account for the payment schedule, downloadable statements and confirmation letters, and reminded attendees that CalPERS cannot give tax advice and retirees should consult a tax professional for personalized guidance.
